On May 3, the U.S. Court of Appeals for the Fifth Circuit entered an order denying the CFPB’s (CFPB) petition for a panel rehearing and effectively setting the stage for a long-awaited ruling on a preliminary injunction in the ongoing lawsuit challenging the CFPB credit card late fee rule. The petition was filed by the CFPB to reconsider the panel’s order vacating the district court’s order that transferred the case to the U.S. District Court for the District of Columbia and issuing a writ of mandamus directing the district court to reopen the case.

The Fifth Circuit’s order simultaneously withdrew its previous opinion dated April 5, 2024, and replaced it with a new opinion — further developing the rationale set forth in its unpublished order discussed here — that vacates the district court’s transfer order and orders it to reopen the case. The district court must now rule on the plaintiff’s motion for a preliminary injunction by May 10.

As previously reported, several trade groups, including the U.S. Chamber of Commerce, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business are challenging the CFPB’s rule. They argue that it is unconstitutional and violates the Administrative Procedures Act and have long sought a preliminary injunction while the case is pending.

We will continue to monitor this case closely and provide updates as they become available.